Design-led lifestyle brand Chumbak has reportedly secured $13.1 Mn (INR 85 Cr) in a round of funding led by mid-market private equity firm, Gaja Capital. The round also saw the participation of existing backers, Matrix Partners India and Seedfund.
Narayan Ramachandran, Operating Partner at Gaja Capital, also joined the funding round in Chumbak. According to sources close to the development, the Mumbai-headquartered PE firm has pumped a total of $8 Mn (INR 52 Cr) in the startup, while Matrix Partners and Seedfund have invested $3.4 Mn (INR 22 Cr) and $931K (INR 6 Cr) respectively.
Commenting on the fundraise, Gopal Jain, Managing Partner at Gaja Capital said, “There are very few design-driven, lifestyle brands in India, and that’s what makes Chumbak a unique investment from our perspective.”
As stated by Chumbak co-founder Vivek Prabhakar, the investment will be used to bolster the company’s product portfolio and deepen its penetration in the top five to six Indian metro cities. To that end, it is also eyeing offline tie-ups with large departmental chains.
Prabhakar added, “We are thrilled to have Gaja Capital on board to add to the great expertise that Matrix Partners have brought us in the last few years. The focus now is on growing our channels with the expansion of our store presence across the country and building our online presence. We are looking into some brand new categories like personal care and excitement and energy levels are extremely high across the team. We also plan to enter overseas markets such as Indonesia, Malaysia Singapore and Hong Kong by the second quarter of the calendar year 2018.”
Chumbak: Journey From 2010 To Present
Chumbak was started in early 2010 by husband-wife duo Vivek Prabhakar and Shubhra Chadda, with the idea of creating colourful souvenirs with an Indian theme. By 2013, it diversified the portfolio from refrigerator magnets to phone/laptop cases, coffee mugs, accessories, home décor and now apparel for men and women.